If the cyclical unemployment rate is greater than zero,then the
A)economy is operating beyond full employment.
B)economy is operating at full employment.
C)economy is operating at less than full employment.
D)frictional unemployment rate is greater than the structural unemployment rate.
E)real-wage unemployment rate is negative.

Question

Quizplus · Accepted Answer

Cyclical unemployment refers to the portion of unemployment that is caused by fluctuations in the business cycle, specifically the downturns. If the cyclical unemployment rate is greater than zero, it means that the economy is not operating at full employment but rather at a level below full employment. Therefore, choice C is the best answer.

If the Cyclical Unemployment Rate Is Greater Than Zero,then the